Kotak Mahindra launches 'Kotak Emerging Equity Scheme'

Ahmedabad, Feb 19 (UNI) Kotak Mahindra Mutual Fund has launched a three-year close ended equity growth scheme called 'Kotak Mahindra Mutual Fund'.

The investment objective is to generate long-term capital appreciation from a portfolio of equity and equity-releated securities by investing predominantly in mid and small cap companies, said Kotak Asset Management (KAM) CEO Sandesh Kirkire.

''The three year period is a reasonable time to say whether volatility exists or not. We go by the value discovery cycle and there is an option to exit. There is also an monthly exit window,'' said KAM Vice-President and Head Product Laxmi Iyer.

The scheme focuses on identifying winning themes over long-term and maximise returns by playing out the whole investment cycle, she Iyer said.

As a broad framework, the scheme will look at themes like emerging businesses, embedded value, unlocking of intellectual property rights (IPR), restructuring and turnaround stocks that are under-researched and underowned by institutional investors and as a close endeed scheme it will serve as a viable option to overcome the greed and fear factor which result in redemptions affecting the fund manager's ability to take advantage of long-term investment in a stock, Iyer said.

The units are priced at Rs 10 with a minimum investment of Rs 5,000. The offer opens on Febraury 12 and ends on March 12.

UNI